Deep Dive
1. Token Unlock Impact (Bearish)
Overview: On 28 October 2025, 181 million GRASS tokens (72.4% of circulating supply) were unlocked, releasing ~$80M in tokens allocated to early investors and contributors. This followed a similar unlock in late October 2024 that triggered a 50% price drop over 30 days.
What this means: The sudden supply influx risks dilution, especially given GRASS’s low liquidity (24h volume: $21.45M, down 34% YoY). Historical patterns show GRASS tends to decline 10–30% post-unlock due to sell-offs from vested holders.
What to watch: Exchange inflows – if unlocked tokens flood markets, $0.3126 (2024 low) could be tested.
2. Technical Downtrend (Mixed)
Overview: GRASS trades at $0.316, below its 7-day SMA ($0.317) and 30-day SMA ($0.339). The RSI-14 sits at 42.47 (neutral), but MACD shows bearish momentum (histogram: -0.00188).
What this means: While not deeply oversold, the price struggles to reclaim $0.45–$0.64 resistance (Fibonacci 23.6–38.2% retracement levels). Weak volume (-25% weekly) limits upside potential.
Key level: A close above $0.317 (7-day SMA) could signal short-term relief; failure risks retesting $0.262 (2025 low).
3. Market-Wide Risk Aversion (Bearish)
Overview: Bitcoin dominance rose to 58.55% (up 0.5% weekly), signaling capital rotation away from altcoins like GRASS. The total crypto market cap fell 2.76% in 24h, with altcoin liquidity thinning (-55.96% monthly volume).
What this means: GRASS’s DePIN/AI narrative struggles for attention in a risk-off environment. Projects with high circulating supply unlocks (e.g., GRASS, SUI) face amplified selling pressure.
Conclusion
GRASS’s dip reflects a combination of token unlock anxiety, weak technical structure, and a risk-averse market favoring Bitcoin. While the project’s fundamentals (8.5M active users, $10M funding round) remain intact, short-term sentiment is dominated by supply dynamics.
Key watch: Can GRASS hold $0.3126 support? A break below could accelerate selling, while a recovery above $0.35 might signal absorption of unlocked supply.